A study by research consultancy, Trialogue, reveals that private sector expenditure on corporate social investments (CSI) has declined.
It says South Africa’s private sector spent R8.2 bn on social causes in 2014, which, according to the survey, translates into a marginal decline of 2% in comparison with last year.
Only 12 out of the 72 companies on the JSE Social Responsibility Index are rated as “good” on their CSI reporting. Overall, sadly, there is no company that is rated “excellent”.
For a long time, the private sector as a whole has been criticised for poor reporting on the outcomes of their investment in various communities. And it seems the situation is not improving, if the Trialogue report is anything to go by.
In a review of the results, the consultancy fears this has practical and harmful effects on community upliftment efforts, and places company reputations at risk.
Private sector organisations have been accused of making claims that have not been properly tested or confirmed.